Inside World Trade

Houston attains top ranking for world coffee imports

The Port of Houston is well known for its high volume imports of oil and steel, but not many Houstonians are aware that the Port has become one of the top ranked coffee ports in the world. In 2001 the Port of Houston Authority (PHA) placed a proposition on the ballot that would exempt all green coffee and raw cocoa imports from the state inventory tax. The PHA recognized that green or raw coffee beans were the second largest traded commodity in the world and needed to be part of the Port's future. The voters and legislature agreed, and passed the tax exemption.

Houston's port was well equipped to handle high volumes of coffee due to the size and location of its facilities. In addition, Houston has three of the only four decaffeination plants in the U.S. as well as a number of roaster and coffee-related companies. After the tax exemption was granted, Houston joined the ranks of New York/New Jersey, New Orleans, and Miami as a delivery point for the Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar, and Cocoa Exchange. In 2003 the Port of Houston was officially designated a green coffee port.

Since then, the Port has consistently increased its volume of coffee imports with the potential to reach 3.7 million bags of coffee beans annually. According to the Greater Houston Coffee Association, the coffee port designation has had a tremendous effect on the local and regional economy. It has expanded employment opportunities in the processing and servicing industries of coffee, which include the roasting, packaging and warehousing of coffee beans.

Coffee importers and distributors have not only benefited from the state tax exemption, but have also not had to pay U.S. tariffs. Both raw and roasted coffee can be imported duty free regardless of the country of origin. However, all coffee imports are still subject to U.S. import laws and procedures for food products.

The coffee bean is actually the seed of a fruit that grows on trees grown in over 70 countries. Most of these countries are located around the equator. The best temperature range for coffee is between 60 and 70 degrees Fahrenheit, with at least six inches or more of rainfall per month. South American countries comprise the largest coffee growing areas in the world with Brazil and Columbia the top producers. The top ten coffee exchange countries through the Port of Houston are Columbia, Brazil, Mexico, Costa Rica, Germany, Peru, Guatemala, Sweden, Honduras, and Vietnam.

Coffee beans are hand picked by manual laborers in some of the most remote and inaccessible regions of the world where conditions are harsh and the oxygen is thin. Although most coffee is made from the robusta bean grown at lower altitudes, the arabica bean used for gourmet coffee is grown at high altitudes. From these regions the beans are transported to ships that sail into the Port of Houston and unloaded into warehouses, mostly in the east end of town. From there the beans will be distributed to roasting and blending plants which will package and ship bags of coffee to retail and wholesale outlets. So remember, that hot cup of coffee in the morning has made a long journey to reach your table.

Frances Allday was a specialist in commercial trade with U.S. Customs and Border Protection for 25 years